RI shares end up on late rebound
RI shares end up on late rebound
Agencies
Jakarta/Singapore
Indonesian shares ended slightly higher Monday, after falling
in the previous two sessions, on a late rebound in select blue
chips, dealers said.
Overall sentiment remained weak and cautious amid security
concerns ahead of parliamentary elections next week, they added.
"The market was seen trying to recover after recent losses,"
said a trader with a foreign brokerage firm. The main index had
fallen 3.3 percent in the previous two sessions.
After staying in negative territory for most of the day, the
Jakarta Stock Exchange Composite Index ended up 0.4 percent, or
2.792 points, at 716.921, up from an intra-day low of 710.612.
Consumer goods producer Unilever Indonesia led the gainers,
rising Rp 75, or 2.2 percent, to Rp 3,550 on a rebound and after
the company said its 2003 net profit rose 33 percent on year to
Rp 1.297 trillion.
Dealers said bargain-hunters bought shares in cigarette
companies after recent falls and on expectations of higher sales
this year.
Cigarette maker Gudang Garam rose Rp 100, or 0.8 percent, to
Rp 12,750 and its rival Hanjaya Mandala Sampoerna gained Rp 150,
or 3.4 percent, to Rp 4,575.
The rupiah ended slightly higher as market participants
trimmed long positions in the dollar on abating demand from local
companies.
The dollar closed at Rp 8,600, down from its close of Rp 8,615
on Friday.
Local companies have been the main dollar buyers in the past
few weeks as they need the U.S. currency to pay maturing offshore
debts. Local companies are saddled with around US$60 billion in
foreign borrowings, and the repayment of the maturing debt
usually puts pressure on the local currency.
Elsewhere in the region, the yen came within a whisker of 3-+
year highs against the dollar after a report said Japan had ended
its $285 billion drive to weaken the yen, while Taiwan shares
surged on hopes election turmoil was easing.
Tokyo's Nikkei average erased early gains to close down 0.5
percent at 11,718.24 as investors locked in profits on recent
high-flyers such as builders and steel makers.
The yen's strength trimmed rises in some exporters such as
Canon Inc, but market sentiment remained firm amid growing
optimism over Japan's economic recovery.
"Overall market sentiment is still firm, but caution started
emerging and short-term investors were seen starting to cash in
profits," said Hiroyuki Nakai, chief strategist at Tokai Tokyo
Securities.
"Also, there are growing concerns that the market's recent
rally has boosted domestic-related stocks too much."
Taiwan shares jumped 5.6 percent after the opposition
Nationalist Party said at the weekend it believed a recount in a
fiercely contested presidential poll could begin within two days.
The index, which had been Asia's best performer outside China
this year before the poll, sank 10 percent last week.
The euro hit a new year low at around $1.2050 on nervousness
the European Central Bank may cut rates soon. It was at $1.2070
late on Friday.
South Korean shares rose 1.2 percent, led by a 1.8 percent
rise in technology bellwether Samsung Electronics Co Ltd on
expectations for strong quarterly earnings. Mobile phone maker LG
Electronics climbed three percent.
Taiwan's TSMC, the world's largest contract chip maker, jumped
5.1 percent, while smaller rival United Microelectronics Corp
surged seven percent. The island's electronics sub-index rose 5.5
percent.
Stock benchmarks fell 0.2 percent in Hong Kong and 0.5 percent
in Australia.